Ohio Joins the Medical Marijuana Legalization Train

Ohio Gov. John Kasich signed HB523, which continues the
nationwide trend of States legalizing medical marijuana.

When Will the Law Become Operable?

On September 8, 2016, the new law becomes effective –
meaning the State will officially begin establishing the Medical Marijuana
Control Program, which is the infrastructure to regulate the industry. Patients with a “qualifying medical condition”
(listed below) won’t actually gain access from within the State until the
Program is established, no more than 2 years after the effective date.

How Will the Medical Marijuana Program Work?

HB523 requires the Department of Commerce and Pharmacy
Board to establish and jointly administer the Program primarily through rules
that they must write and adopt within a year of the effective date. The
Department will license cultivators, processors and testing laboratories
through rules adopted within eight months of the effective date, and the Board
will license retail dispensaries and register patients and caregivers.

Both the Department and Pharmacy Board will be advised by
the newly-formed Medical Marijuana Advisory Committee, consisting of
gubernatorial and legislative appointees.

The bill authorizes the State Medical Board to issue
certificates to physicians seeking to recommend medical marijuana treatment. The
bill prohibits smoking or combustion of medical marijuana, but does allow marijuana
oils, tinctures, plant material, edibles, patches, vaporization and any other
form approved by the Board of Pharmacy.

The Qualified Medical Conditions that can be treated by marijuana
under the bill:

AIDS

Alzheimer's disease

Amyotrophic lateral sclerosis (ALS)

Cancer

Chronic traumatic encephalopathy

Crohn's disease

Epilepsy or another seizure disorder

Fibromyalgia

Glaucoma

Hepatitis C

Inflammatory bowel disease (IBD)

Multiple sclerosis (MS)

Pain that is either chronic and severe or intractable

Parkinson's disease

Positive status for HIV

Post-traumatic stress disorder

Sickle cell anemia

Spinal cord disease or injury

Tourette's syndrome

Traumatic brain injury

Ulcerative colitis

The State Medical Board may add to this list.

Other Interesting Notes about the New Law

The bill prohibits home growing of medical marijuana even
for personal, family or household use. The bill creates an affirmative defense
for patients obtaining medical marijuana from other sources before it is
available from regulated Ohio sources, but it must be in a form and consumed
only as allowed by HB523.

Employers may still establish and enforce drug-free
workplaces that prohibit and test for any drug that is illegal under Federal
law. Furthermore, employers need not accommodate an employee or permit an
employee’s use, possession or distribution of medical marijuana, and discharge
due to use may be considered just cause under the Unemployment Compensation Law
if the use violated an employer’s drug-free workplace policy or other formal
program or policy.

The law provides an exemption to a financial institution
that provides financial services to a compliant licensee from any Ohio criminal
law under specified conditions, and authorizes the Department of Commerce
Director to adopt rules to establish a closed-loop payment processing system to
be used by registered patients and caregivers and certain licensees.

The Department and Pharmacy Board must, if possible, each
issue at least 15% of licenses to entities that are owned by members of a
racial minority group.

Municipalities or townships may prohibit or limit the
number of retail dispensaries by ordinance or resolution. Similarly, zoning
ordinances may restrict locations as under current law. Licensees cannot
operate near (within 500 feet) a school, church, daycare, library or park.

There are several exemptions for possession created for
certain institutions of higher learning, medical centers, private research and
development organizations and related organizations.

Since the manufacture, sale and distribution of
marijuana remains a Federal offense, look for the Ohio Supreme Court before the
effective date to issue some guidance to Ohio lawyers on advising clients
participating in the industry because professional conduct rules generally
prohibit lawyers from helping a client violate a law.